My Lords, in moving Amendment 1, I shall speak also to Amendments 4 and 5 in the name of the noble Lord, Lord Bradshaw, who has tabled a number of amendments that aim to restrict the ability of the Competition and Markets Authority to investigate franchising schemes for a period of two years unless it has received a complaint, or has become aware of a significant adverse effect on competition.
Let me start with government Amendment 1. As noble Lords will recall, the Competition and Markets Authority issued a letter on the Bill on 29 June which contained nine recommendations. Our response to these recommendations was issued on 10 October and is now on the GOV.UK website. One of these recommendations was for the CMA to be listed as a statutory consultee in relation to consulting on franchising proposals. The Government accepted this recommendation and tabled Amendment 1.
The CMA is already a statutory consultee in relation to advanced quality partnership, advanced ticketing and enhanced partnership schemes. I take the view that it would be helpful for franchising authorities to engage with the CMA as they develop their proposals. This should help ensure that the authority developing its franchising proposals is made aware of any potential effects on competition, and the benefits or impacts this could have for bus operators and local people.
I now turn to Amendments 4 and 5 in the name of the noble Lord, Lord Bradshaw. As I mentioned on Report, the CMA will not have any specific powers to block bus franchising schemes. However, it is important to remember that their role is to conduct market
studies and investigations in markets where there may be competition and consumer problems, with the aim of improving the situation for passengers. We believe that any restriction of the powers available to the CMA would send the wrong message about its important role in protecting consumers. As such, I urge the noble Lord not to move his amendment.
In addition, as the noble Lord may be aware, Schedule 10 to the Transport Act 2000, which the noble Lord seeks to amend, does not give the CMA the power to investigate franchising schemes. The schedule provides a competition framework in which partnership schemes should operate. As such, the noble Lord’s amendment does not appear in the relevant section of the Bill.
I hope that this explanation and the assurances I have given—we have met in this regard as well—have persuaded the noble Lord, Lord Bradshaw. I know he recognises the important role that the CMA has to play, and that local authorities should look to work with it as proposals are developed to ensure local bus passengers get the best possible services. However, I do not feel that the amendments are necessary as the CMA is not being given any specific powers to block bus franchising schemes. I trust that has reassured the noble Lord to the extent that he is minded not to press his amendments. I beg to move.